There are other possibilities. The negative valuation adjustments to PruFund’s pricing introduced following markets’ pandemic-induced slump may also have had an impact. As with with-profits funds of old, these adjustments are part and parcel of this kind of investment approach. But after several years of positive performance, their introduction may have been an untimely reality check for advisers and their clients.
Remote working has brought other issues: advisers have complained of their frustrations with Prudential’s service over the past year as they grappled with the fallout from the pandemic.
Whatever the reasons, M&G is expecting flows will pick up again as and when advisers' face-to-face meetings resume. It is also anticipating a new surge in demand, despite some rivals' belief that the PruFund offering is expensive and therefore at particular risk of competitive threats.
Asked by one analyst whether there might be “pent-up demand” as a result of the pandemic, Foley said: “we would hope there is a catch up there”.
dan.jones@ft.com
